Ratio analysis is a tool for analysing the financial statements of any enterprise.
True. Ratio analysis is a technique of financial analysis that describes the significant relationship between various items of a balance sheet and a statement of profit and loss. It measures the comparative significance of individual items to assess the profitability, solvency, and efficiency of an enterprise.
Explanation
The textbook context explicitly states under section 4 regarding Ratio Analysis that it is a 'technique of financial analysis'. It further explains that ratio analysis describes the significant relationship between items of financial statements and helps assess the profitability, solvency, and efficiency of an enterprise. Therefore, the statement is true.